Only A Fool Doesn't See This Coming!

http://biz.yahoo.com/ap/080226/economy_twin_evils.html

I'm telling you! The American Standard of Living is way too high. This is a rare time, in the history of the world, when prosperity has been so high across the board. Everyone is doing pretty well. For those who aren't doing well, it's only because it's compared to those who are doing well.

How long can this great prosperity last? It doesn't make sense. The history of the world tells you that there are good times and bad times. And the recent good times, from the time Reagan became President to this present day, they just can't continue.

I speak to a lot of old men who are "thrifty" and they are all concerned about what's coming. They say it unavoidable. And these old men are people who have invested in the market all their lives.

I know something is in the air because one day I went to buy some milk and it was $4.59 a gallon. Just the day before it was $3.99 a gallon. From one day to the next it went up 60 cents. Lettuce went up from 99 cents to $1.99 for a head. And since that happened, a few months ago, the prices haven't come down. And that's just milk and lettuce. (It really isn't that hard to figure out.)

For those who don't understand what that means, it means this: The combination of the price increase across the board indicates that people don't have as much money to spend on other things. And if people aren't spending money on other things then the economy slows down. When we have to spend most of our money on food, housing, heat, gas, and clothing then we can't spend as much on gadets.

Spending on food, housing, gas, and clothing isn't what makes the economy stay afloat. It's the spending on everything else that makes for a healthy economy.

Recession is in the air. And I don't think the next President of the United State of America is going to be able to avoid that. And if that's the case, then healthcare is the big thing to have available for all the people. You know the old saying: As long as you have your health, you're OK. Lets hope that's true if this country goes into recession.

mike